Trial balances for Porter Company and its subsidiary, Spitz Company, as of December 31, 2024, follow:

Porter Company made the following open- market purchase and sale of Spitz Company common stock: January 1, 2025, purchased 45,000 shares for $135,000; May 1, 2024, sold 4,500 shares for $28,000. The book value of Spitz Company’s net assets on January 1, 2025, was $140,000; the excess of fair value over net assets acquired relates to land. Subsequent changes in the book value of Spitz Company’s net assets are entirely attributable to earnings retained in the business. Spitz Company earns its income evenly throughout the year. Porter Company uses the cost method to account for its investment.

Required:
Prepare a consolidated financial statements workpaper as of December 31, 2024. Begin the income statement section of the workpaper with “Net Income Before Dividend Income” which is $63,200 for Porter Company and $60,000 for Spitz Company.

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Debits Cash Accounts Receivable (net) Inventory Investment in Spitz Company Plant Assets Land Dividends Declared, 10/1 Total Porter $90,000 62,000 106,000 110,160 320,000 69,000 50,000 $807,160 Spitz $40,000 38,000 64,000 149,000 46,000 30,000 $367,000